Stevens Textile's 2007 Financial Statetemets are shown below: Stevens Textile: Balance Sheet as of December 31, 2012 (thousands of dollars) Cash $1,080 Accounts payable $4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Notes payable 2,100 Total Current assets $16,560 Total current liabilities $9,300 Net fixed assets 12,600 Mortgage bonds 3,500 Common stock 3,500 Retained Earnings 12,860 Total assets $29,160 Total liabilities & equity $29,160 Stevens Textile: Income Statement for December 31, 2012 (thousands of dollars) Sales $36,000 Operating costs 32,440 EBIT 3,560 Interest 460 Earnings before taxes 3,100 Taxes (40%) 1,240 Net Income 1,860 Dividends (45%) 837 Addition to retained earnings $1,023 a. Suppose 2008 sales are projected to increase by 20% over 2012 sales. Use the forecasted financial statement method to develop a pro forma balance sheet and income statement for December 31, 2013. Use an interest rate of 8% on the balance of debt at the beginning of the year to compute interest (cash pays no interest). Use the pro forma income statement to determine the addition to retained earnings. Assume that the company was operating at full capacity in 2012, that it cannot sell off any of its fixed assets, and that any required financing will be borrowed as notes payable. Also assume that assets, spontaneous liabilities, and operating costs are expected to increase by the same percentage as sales. What are the additional funds needed?

b. what is the resulting total forecasted amount of notes payable?

c. In your answer to parts a and b, you should have changed any interest on the additional debt added during 2013 because it was assumed that the new debt was added at the end of the year. but now suppose that the new debt was added at the end of the year. But now suppose that the new debt is added throughout the year. Don't do any calculations, but how would this change the answer to part a and b?